In recent months, discussions on the stock market have focused on what would become of Vulcan industrial & Mining Corp. with the upcoming entry of the East Coast Mineral Resources Co.
Some market analysts actually believe that Vulcan will become a dividend paying stock. And rumor has it that East Coast Mineral earns income from its mining concessions which operate in partnership with an established mining company (also listed).
So, it was a bit of a guessing game in the market as to which assets or values East Coast Mineral would infuse into Vulcan.
Biz buzz has learned that the official buyout of Vulcan by East Coast Mineral finally took place last week, during the first annual shareholders meeting.
The name of the listed entity has been changed to East Coast Vulcan Corp. and the takeover was essentially an exchange of assets for shares.
Vulcan received 100 percent of East Coast Mineral’s outstanding inventory, taking control of all of its mining interests, including operating mine sites. Of course, Vulcan had no business activity and its audited financial statements showed that it had a negative book value of £ 1.3 million.
As part of the fallback transaction, Vulcan issued new shares to East Coast Mineral shareholders at a par value of P1 per share, which represents a premium. The value of East Coast Mineral, now 100% owned by East Coast Vulcan, the new name, has been estimated at 8.5 billion pesos by Asian Appraisal Company Inc.
So why would East Coast Mineral give up all its assets worth 8.5 billion pesos, in exchange for shares in Vulcan, which has no business operations and negative book value?
Easy. Vulcan is a publicly traded company and East Coast Mineral can now call on investors, both institutional and public, to develop its mine sites with existing Mineral Production Sharing Agreements (MPSA).
As part of its plan, the newly named East Coast Vulcan will operate its own mines, instead of simply receiving royalties for its MPSAs.
We are told that East Coast Vulcan is also evaluating plans to set up nickel ore processing plants, possibly in partnership with foreign companies.
We asked around and found that East Coast Mineral was formed in 1995, operated gold and nickel mines, and had long term partnerships with mining companies.
Our source indicated that one such company is Nickel Asia of the Zamoras, which derives a good portion of its operating income from the East Coast Mineral claims. The man behind the business is Hilario Pagauitan, a geologist by profession, who has worked hard to secure a number of MPSAs from the government.
These MPSAs are valuable today because the government has stopped distributing them in recent years. Although the government recently announced that it will resume processing MPSA applications, none have yet been approved.
Paguitan has undertaken drilling, exploration and mine development work in the East Coast Mineral mining areas.
He is now mayor of his hometown, Sta. Maria, in the province of Isabela, which is a fifth-class municipality. It’s a tale of rags to riches: a probinsiyano who studied in Manila on a scholarship to become a scientist.
Imagine this: East Coast Vulcan is now run by a real miner.
—Daxim L. Lucas
To hold hands
If we’ve seen more and more companies go public this year, it’s not just because there is so much yield-seeking cash waiting to be tapped by those who have the courage to do it. ‘exploit the capital market.
The management of the Philippine Stock Exchange (PSE) has also worked hard to bring new names to the table. Well, they really have to, because the local exchange could otherwise lose a large amount of money to cryptocurrencies (which some say make the stock market boring) or foreign stocks.
In addition to relaxing the listing rules to encourage companies to register both on its main boards and on its main and small, medium and emerging (SME) boards, PSE has launched a program of ‘support for companies interested in raising capital, in particular SMEs.
PSE President Ramon Monzon said in a recent presentation to PCCI-Quezon City that there are now 25 companies enrolled in PSE’s Listing Assistance Program, where the PSE holds one-on-one sessions to discuss of their growth plans and help them take the next steps. towards the public.
“We put these potential issuers in touch with IPO advisors from the financial, legal and accounting fields in preparation for their IPO,” said Monzon.
The PSE has also made it easier for SMEs to access its online pre-registration assessment tools to help them assess their IPO readiness and listing consultation requirements, he said. declared.
Distributing IPO applicants across the specific industries they come from, the consumer space is still the most dominant, with 11 applicants now enrolled in the Get Started program, as these companies consumers seek to take advantage of the country’s recovery momentum, supported by the reopening of the economy.
There are four applicants each from the Real Estate and Technology / Media / Telecommunications sectors and two each from the Mining / Materials and Energy / Utilities sectors. There is a candidate from the financial sector and another from the industrial space.
Hopefully these applicants – which we assume to be good enough if they meet the registration requirements – will leave money on the table, or appraise their offers attractively, and most importantly attract small local investors who are just starting to find out. the ease of participating in IPO online via the PSE EASy platform.
RLC goes to Pagadian
Continuing to invest for the long term, Robinsons Land Corp. (RLC), run by Gokongwei, is opening its 56th shopping center in the country this Friday. It debuts in Zamboanga del Sur with the opening of Robinsons Place Pagadian, which will add approximately 25,000 square meters of gross leasable area to its portfolio.
Pagadian’s newest mall, known for its lush landscape and scenic grounds, should be at the forefront of the area’s commercial life, as it is close to the city’s Capitol and the famous Plaza Luz landmarks and Legislative Building.
The design of the shopping center was inspired by the geometric shapes and colors of the vinta, a traditional outrigger boat used by locals as a fishing boat, cargo ship, and barge.
Foot traffic in shopping malls is expected to increase across the country as the government relaxes lockdown protocols amid falling new COVID-19 cases and rising vaccination rates.
—Doris Dumlao-Abadilla INQ
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